LABOUR COST IN MALAYSIA 2016 Final Report - National Labour Cost Survey 2016 (F | Page 107

Appendix 1: Notes, Assumptions and Limitations in the Computation of
Total Labour Cost
Cost components
Notes / assumptions / limitations
Wage cost
a.
Basic wage, EPF and
SOSCO
The average payment per employee per month is
computed based on:
(Total payment by establishments in June 2016 divided
by total employees in these establishments in June
2016)
b.
Cash allowance,
commission and OT
payment
60%, 15% and 61% of survey respondents paid for cash
allowance, commission and OT respectively in June
2016. The average payment per employee per month
for each item is computed based on:
(Total payment by establishments which paid for cash
allowance / commission / OT in June 2016 divided by
total employees in these establishments in June 2016)
c.
Other pension fund
Less than 1% of survey respondents paid for other
pension fund in June 2016. The average payment per
employee per month is computed based on:
(Total payment by establishments which paid for other
pension fund in June 2016 divided by total employees
in these establishments in June 2016)
d.
Bonus
66% of survey respondents paid for bonus in 2015. The
average payment per employee per month is computed
based on:
(Total payment by establishments which paid for bonus
in 2015 divided by total employees in these
establishments in June 2016, and divided by 12 months)
The calculation assumed that there was no major
change in the total employees of these establishments
from 2015 to June 2016
e.
TOTAL WAGE COST
Calculation for total wage cost factored in all the above
cost components, although an employer may or may
not pay for cash allowance, commission, OT, other
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